Paycheck Advance Break-Even Calculator
Calculate the short-term effective APR of your advance and compare it to an alternative interest rate.
Additional Information and Definitions
Advance Amount
How much you plan to borrow or receive as an early paycheck portion. Usually less than your full paycheck.
Advance Fee
A flat amount or initial charge for receiving the advance. Some services might call this a financing fee.
Days Until Payday
How many days from now you'll repay or the next payday arrives to settle the advance. We need this to estimate daily cost.
Alternative APR (%)
If you have an alternative or typical interest rate, see if your advance's effective rate is higher or lower.
Figure Out If It's Worth It
Pinpoint the cost of bridging the gap until your next paycheck.
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Key Terms for Paycheck Advances
These definitions clarify how short-term paycheck advances work.
Advance Amount:
The portion of your paycheck you receive early. Some lenders or apps limit the total available.
Advance Fee:
A charge you pay for the convenience of getting money now. It might be a flat fee or percentage-based.
Days Until Payday:
The repayment window. The shorter it is, the higher the effective annual rate if fees are significant.
Effective APR:
The interest rate you'd effectively pay if you annualized your short-term fee for a direct comparison.
5 Surprising Points on Paycheck Advances
Advancing your paycheck sounds simple, but there's more to it. Here are five interesting insights:
1.They're Not Technically Loans
Many paycheck advance apps claim to provide 'tips-based' or fee-based services instead of calling it a loan, but the net effect is similar—you're paying for early access to funds.
2.Automatic Repayments
In many cases, the service automatically deducts the advanced amount plus any fees on your payday, leaving you with less net pay that day.
3.Short Terms Multiply Fees
A seemingly small fee can become exorbitant when converted to an annual percentage, since you only hold the money for days or a couple of weeks.
4.They May Encourage Spontaneous Spending
Easy access to advanced cash can tempt overspending. People who take frequent advances can get into a cycle of perpetual borrowing.
5.Credit Score Impact Varies
Some advances don’t show on credit reports, but if you fail to repay or the arrangement is mishandled, it can eventually harm your credit or lead to overdrafts.